Decree No. 03/2006/NĐ-CP stipulates the minimum wage for Vietnamese workers employed by foreign-invested enterprises, foreign agencies and organizations, international organizations, and foreign individuals in Vietnam.

DECREE

Prescribing the minimum wage for Vietnamese workers employed by foreign-invested enterprises, foreign agencies, organizations, international organizations, and foreign individuals in Vietnam

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Labor Code on June 23, 1994; Law Amending and Supplementing Certain Articles of the Labor Code on April 2, 2002;

At the proposal of the Minister of Labor, Invalids and Social Affairs,

DECREE:

Article 1. The minimum wage for paying remuneration to Vietnamese workers performing the simplest work under normal working conditions for foreign-invested enterprises, foreign agencies, organizations, international organizations, and foreign individuals in Vietnam (hereinafter referred to collectively as enterprises) shall be as follows:

1. A rate of 870,000 VND/month applicable to enterprises operating in districts within Hanoi City and Ho Chi Minh City;

2. A rate of 790,000 VND/month applicable to enterprises operating in counties within Hanoi City and Ho Chi Minh City; districts within Hai Phong City; Ha Long City in Quang Ninh Province; Bien Hoa City in Dong Nai Province; Vung Tau City in Ba Ria - Vung Tau Province; Thu Dau Mot Town and Thu An, Di An, Ben Cat, and Tan Uyen Districts in Binh Duong Province;

3. A rate of 710,000 VND/month applicable to enterprises operating in the remaining areas.

Article 2

1. The minimum wage prescribed in this Decree shall serve as the basis for determining wage levels in the wage scale, salary table, various types of salary allowances; calculating wage levels stipulated in labor contracts; implementing other systems established and promulgated by enterprises in accordance with their authority as provided by labor laws.

2. The lowest wage paid to skilled workers (including workers trained by enterprises themselves) must be at least 7% higher than the minimum wage prescribed in Article 1 of this Decree.

3. Enterprises are encouraged to implement a higher minimum wage than that prescribed in Article 1 of this Decree.

Article 3

1. The minimum wage prescribed in Article 1 of this Decree shall be adjusted by the Government based on economic growth rates, cost of living indices, and labor supply during each period.

2. The Ministry of Labor - Invalids and Social Affairs, after soliciting opinions from the Vietnam General Confederation of Labor, representatives of workers, and relevant ministries and sectors, shall submit to the Government for adjustment of the minimum wage prescribed in Clause 1 of this Article.

Article 4. This Decree takes effect from February 1, 2006.

Abolish previous regulations that conflict with this Decree.

Article 5. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees directly under the central government are responsible for enforcing this Decree.